Orenthink

Oreninc Index Rises Marginally

The Oreninc Index rose marginally for the week ending February 26, 2015. Total dollars announced jumped to $59.2m, a two-week high. Three brokered financings were announced for $11.3m, a seven-week low. No bought deal financings were announced for the first time in seven weeks.

With 36 deals being announced — a nine-week high — it appears that companies were ready to try to raise some cash in anticipation of this week’s PDAC. With that said, the low average offer size indicates that, while companies would like to be raising money, they are not too confident it will happen at a significant level. The Index could certainly be worse, but any optimism that this year will be different is melting as we move closer to the spring months.

Oreninc Index Falls to Reality

The Oreninc Index returned to reality for the week ending February 19, 2015. Total dollars announced dropped to $38.2m, a two-week low. Two brokered and bought deal financings were announced for $21m, six- and two-week low respectively.

Deal-making for the week continued, albeit on a lower level, with Timmins Gold Corp.’s (TSX:TMM) acquisition of Newstrike Capital Inc. (TSX-V:NES) in an all-stock deal worth $140m. The deal will create a Mexican-focused gold producer, with Timmins shareholders owning around 63% of the company post-deal and Newstrike owning the remaining 37%. Gold prices for the week crashed below $1,200 for the first time since the beginning of the year.

It’s never great to see such depressed numbers after a week as strong as last, though the fact that it came in a holiday-shortened week makes it easier to swallow. We’ll see if the PDAC has any lifting effect as companies try to build excitement leading into the annual meeting of the industry.

Oreninc Index Reaches Highest Level Since October

The Oreninc Index reached its highest level since October for the week ending February 12, 2015. Total dollars announced exploded to $221.6m, a 17-week high. Six brokered deals were announced for $165.7m, a 48-week high; five bought deals were announced for $156.6m, a 49-week high.

It’s nice to finally see a standout week after so much stagnation in what should be the height of the money-raising season. Hopefully the Index can stay at this level, or somewhere near it, as the industry looks ahead to the PDAC in the coming weeks.

Oreninc Index Levels Out

The Oreninc Index continued its streak of leveled out consistency for the week ending February 5, 2015. Total dollars announced dropped to $33.9m, a four-week low. Two brokered financings were announced for $21.7m, a four-week low; one bought deal was announced for $10m, also a four-week low.

No major deals were announced, making it the second week in a row of quiet deal-making in the space. Gold had another sub-par week, continuing its roller coaster of a 2015 to below $1,270 an ounce, though it still remains well above November’s YTD low. Iron ore also continued its downward trend, hitting a five-and-a-half-year low in its seemingly never-ending fall. In brighter news, copper prices rose marginally to a two-week high.

While hovering around this suppressed--if not relatively respectable--level is not an ideal way to start the year, it’s a positive sign that some companies are still raising cash via brokered and bought deals.